Question

Stripes Inc. has a noncontributory defined pension plan for its employees. During 2020, the company had service cost of $45,000, an expected return on plan assets of $9,500, amortization of prior servicecost of $4,000, amortization of net pension loss of $2,000, and benefits paid to employees of $40,000. The January 1, 2020, balance in its projected benefit obligation was $200,000. The discount rate is 8%. Stripes pension expense for 2020 would be?
a. $59,500
b. $61,500
c. $53,500
d. $50,500

Answer 1

I think the answer is A
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